Staff Report.Planning Consultant Services
PREPARED BY: Sean Mullin, AICP and Ryan Safty
Senior Planner Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Community Development Director, Town
Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832 ● www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/01/2022 ITEM NO: 06
DATE: February 24, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the
Agreement with M-Group for Consultant Services as Provided in the Senate
Bill 2 Los Gatos Planning Grant Program Application by Extending the Term of
the Agreement and Increasing Compensation to a Total Not to Exceed
$107,679 Including Contingencies.
RECOMMENDATION:
Authorize the Town Manager to execute a first amendment (Attachment 1) to the agreement
with M-Group for consultant services as provided in the Senate Bill (SB) 2 Los Gatos Planning
Grant Program Application by extending the term of the Agreement and increasing
compensation to a total not to exceed $107,679 including contingencies.
BACKGROUND:
On November 5, 2019, the Town Council adopted Resolution 2019-053 (Attachment 2) to
authorize application for and receipt of Planning Grant Program funds, including execution of
an agreement with the California Department of Housing and Community Development (HCD)
by the Town Manager. Planning staff submitted an application with a proposal to develop
objective standards and by right findings for the review of qualifying housing development
applications, and to identify amendments to the Town Code necessary to add the objective
standards and findings to Chapter 29 of the Town Code (Zoning Regulations).
The Town received approval of the application and entered into an agreement with HCD to
receive reimbursable grant funding for the proposed scope of work in an amount not to exceed
$160,000 (Attachment 3). The agreement with HCD required the Town to apply for
reimbursement by February 28, 2022, and subsequently the Town confirmed that HCD has
extended the agreement with the Town until September 30, 2023 (Attachment 4).
PAGE 2 OF 4 SUBJECT: SB 2 Planning Grant Program Planning Consultant Agreement First Amendment DATE: February 24, 2022
BACKGROUND (continued):
Staff sent out a request for qualifications (RFQ) to provide services for preparation of objective
standards for the review of qualifying housing development applications as provided in the
Town of Los Gatos SB 2 Planning Grant Program application. Staff received proposals from four
firms. After reviewing the submittals and conducting interviews, staff concluded that M-Group
planning consultants provided the best fit, capacity, and professional expertise for the
proposed scope of work.
On March 16, 2021, the Town Council authorized the Town Manager to execute an agreement
with M-Group for the proposed scope of work to be completed by February 28, 2022,
consistent with the terms of the HCD agreement. The estimated cost to complete the proposed
scope of work was $88,185 (Attachment 1, Exhibit A).
DISCUSSION:
Development of objective standards is currently underway and will not be completed prior to
February 28, 2022. The original Agreement for consultant services with M-Group expired on
February 28, 2022, consistent with the terms of the HCD agreement. Staff has confirmed with
HCD that their agreement with the Town has been extended through September 30, 2023.
Staff recommends extending the Agreement with M-Group to September 30, 2023, to remain
consistent with HCD’s extended timeline (Attachment 1, Exhibit B), even though staff
anticipates completion of the project in the Fall of 2022.
To date, the project initiation phase has been completed, including review of State legislation
and existing Town guidelines and standards, and collation of feedback received from five
meetings with the Planning Commission subcommittee. On February 22, 2022, the first of two
community engagement meetings was conducted to gather feedback from residents and
stakeholders.
With consideration of the gathered feedback, staff and M-Group are currently developing draft
objective standards that will be presented and discussed at a second community engagement
meeting, tentatively scheduled for April 2022. After the community reviews and comments on
the draft objective standards, the Planning Commission and Town Council will review the
proposed objective standards. The Planning Commission meeting will likely take place in the
Summer of 2022. After the Planning Commission completes its review and forwards a
recommendation, the Town Council will consider adoption of the objective standards. Once
adopted by the Town Council, the scope of services with M-Group will be complete and staff
will work on implementation of the adopted objective standards.
PAGE 3 OF 4 SUBJECT: SB 2 Planning Grant Program Planning Consultant Agreement First Amendment DATE: February 24, 2022
DISCUSSION (continued):
The original scope of work agreed upon by the Town and M-Group has evolved to include two
additional Planning Commission subcommittee meetings and an additional community
meeting. The timing of several phases of the project has also been adjusted (Attachment 1,
Exhibit B). The change in project scope and additional meetings requires a budget
augmentation of $9,705. The estimated cost to complete the revised scope of work is $97,890
(Attachment 1, Exhibit B).
Consistent with other consultant service agreements, staff is also recommending a 10 percent
contingency to address potential changes in the scope of work as approved by the Town
Manager. The total cost with the recommended budget augmentation and a 10 percent
contingency is $107,679. The revised cost is within the reimbursable grant funding under the
existing agreement with HCD.
CONCLUSION:
Staff recommends that the Town Council authorize the Town Manager to execute a first
amendment to the agreement with M-Group to (Attachment 1) by:
• Extending the Agreement through September 30, 2023, consistent with terms of the HCD
agreement;
• Augmenting the budget by $9,705.00 due to changes in the project scope; and
• Including a contingency clause authorizing the Town Manger to authorize budget changes
up to 10 percent.
These changes would result in a total agreement cost of $107,679, including the contingency.
COORDINATION:
This report has been coordinated with the Town Manager’s Office, Town Attorney’s Office, and
the Finance Department.
FISCAL IMPACT:
The amendment to the agreement would increase the budget for the project by $9,705 to
$97,890. The total cost with the recommended budget augmentation and 10 percent
contingency is $107,679. The cost of the revised project would be reimbursed by an equal
amount of grant revenue received. The grant reimbursement funds will be added to the Town’s
budget prior to payment of the invoices of the planning consultants.
PAGE 4 OF 4 SUBJECT: SB 2 Planning Grant Program Planning Consultant Agreement First Amendment DATE: February 24, 2022
ENVIRONMENTAL REVIEW:
Environmental review is not required for this agreement as it is not a project defined by the
California Environmental Quality Act (CEQA).
Attachments:
1. Draft M-Group First Amendment to an Agreement with Exhibits A and B
2. Resolution 2019-053
3. HCD Agreement
4. SB2 Grant Funds Extension